from forecasting to goal setting to record · pdf filefrom forecasting to goal setting to...

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A step-by-step guide for creating an

Actionable Process that yields results!

by Brooke Samples, president

Profit Blueprints, LLC

From Forecasting ToGoal Setting To

RECORD BREAKING!

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Over the course of her career, today’s presenter,Brooke Samples, has analyzed over 14,000 Dealership

financial statements. Over the past 15 years, Brooke

Samples has coached and motivated hundreds ofDealership Managers in all departments across NorthAmerica. Using her monthly financial analysis, ProfitBlueprints, she compares Dealers’ financial statementsto key Benchmarks. She then uses her previousdealership experience, plus feedback from 15 years ofCoaching & Consulting her Clients to help Managersutilize over 150 Action Plans.

By implementing customized processes her clientsreach their full Net Profit potential. She’s proven thatwith good people, consistent training, the right plans,and a little good-natured "nudging", her Dealershipclients can become very successful.

In 2012 & 2013 she worked with VW University,training VW field staff to understand the profitopportunities hidden in the financial statement. Beforebecoming a Consultant, she worked in Dealerships in avariety of upper management positions. She expandedher automotive knowledge while working for LloydSchiller’s Dealer Service Corporation and later as partof NCM Associates.

Your Presenter,

Brooke SamplesPresident

Profit Blueprints,LLC

[email protected]

1.866.316.7418

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The Forecasting Meeting

The way it was:

The way it has beenThe way it has been:

From Forecasting to Goal Setting to Record Breaking

Profit Blueprints, LLC 1.877.316.7418 All Rights Reserved. Copyright 2013

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Why the Process Should Change

Your Managers Are Not Accountants

Less Support Staff

Less Available Time

More Pressure for Higher Profits

New Managers

Reduce Sandbagging or Exaggeration

5

Forecasting: the process of makingstatements about events whose actualoutcomes have not yet been observed.

Goal Setting: the process of establishing◦ Specific

◦ Measurable

◦ Achievable

◦ Realistic

◦ Time Targeted

From Forecasting toFrom Forecasting toGoal Setting To Record Breaking!Goal Setting To Record Breaking!

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Goal setting is an effective tool to ensure allmembers of a group are clearly aware of acommon goal and the role each member playsin reaching the goal.

Studies have shown that specific and ambitiousgoals lead to a higher level of performance, aslong as individuals accept the goals.

Source: Wikipedia

From Forecasting toFrom Forecasting toGoal Setting To Record Breaking!Goal Setting To Record Breaking!



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Dealer/General Manager/OperationsManager plus

Controller/CFO/Office Manager

Determine how much the Dealershipwants to make in 2014

From Forecasting to Goal Setting

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1) Executives closely examine expenses

2) Which expenses were too high this year, which aregoing to change in 2014

3) Executives determine how much profit the dealershipshould earn in 2014

4) Managers focus on the growth of their departments

5) Quantify each Employees’ contributions to thedealership’s profit goals


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Forecasting an Expense BudgetCFO/Controller/Office Manager

Examine expenses for 2013.

Which will change in 2014?

How are the expenses trending?

How do they compare to benchmarks?

Which are controllable and non-controllable?

Speak with each Manager & ask questions

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Forecasting an Expense Budget

2013 Average Sept Aug Jul JunRent $48,000 $48,000 $48,000 $48,000 $48,000 $48,000

Amortization - Leaseholds $4,500 $4,500 $4,500 $4,500 $4,500 $4,500Repairs Real Estate $1,575 $415 $6,300 $1,000 $150 $417

Taxes - Real Estate $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

Insurance - Bldg $1,340 $1,350 $1,350 $1,350 $1,350 $1,329

Utilities $7,154 $8,987 $8,324 $9,040 $5,992 $6,226Insurance - Other $1,486 $4,800 $4,239 $1,726 $561

Repairs - Equipment $2,921 $3,059 $3,437 $4,657 $1,679 $3,397Depreciation - Equipment $15,312 $14,788 $14,788 $14,788 $15,627 $14,828

Create tools to help. DOCs or import information to Excel

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Regardless of the Allocation method, it

should be fair and it should be easy

for Managers to understand what they

can control and what they cannot.

Allocating Overhead Expenses



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Square Footage. Allocation of Rent,

Amortization of Leaseholds, Electricity,

Property Taxes is typically based on each

Department’s percentage of the Total

Dealership’s Square Footage.


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Employees. One way to allocate clerical and

support staff not assigned directly to a

Department is to calculate each Department’s

Employees as a percentage of the total

Employees and use that percentage (such as a

payroll clerk), or allocate the expense as a

percentage of the amount of time “spent”

doing work for a specific Department.


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Guesstimating. Another method is simple

“Guesstimating.” These expenses usually

include expenses that would be take too

much time to split up, such as the phone bill.

This is often used with the general Office

Staff expense for positions such as a payables

clerk.




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Equal allocate. Equally splitting an expense

amongst all Department can be used for

expenses such as General Manager’s or

Executive compensation.

You could also split an expense based on the

contribution to total Gross Profit – but that

will penalize those who improve their Gross

Profit.


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Source: NADA Industry Analysis

August 2013 YTD

Advertising Expense: 1.01% of Total Sales

Per New Vehicle Retailed: $593 (2012:$621)

Floor Plan Interest Expense: -0.13%

Expense Budget

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Dealer/General Manager/OperationsManager plus

Controller/CFO/Office Manager

Determine how much the Dealershipwants to make in 2014




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Compare each department’s Net Profit as a % of Gross Profit

(for GM & Imports)

Selling Gross Profit as a % of GrossProfit (for Ford)

Department Net Profit as a % ofGross Profit (for Chrysler)


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45%45% – 55%55%45%45% – 55%55%15%15% – 25%25%Body Shop

55%55% – 65%65%55%55% – 65%65%30%30% – 42%42%Parts Dept.

45%45% – 55%55%45%45% – 55%55%20%20% – 30%30%Service Dept.

40%40% – 55%55%40%40% – 55%55%10%10% – 20%20%Used Vehicle

30%30% – 45%45%30%30% – 45%45%10%10% – 20%20%Include Factory $

New Vehicle

ChryslerDept. Net

Profit

Ford SellingGross Profit

Net Profit(GM & Imports)

M.A.PM.A.P. – TargetTargetfor Department:

From Forecasting to Goal SettingDecide What You Want Each Department’s Target to Be

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Where Could You Have Done BetterThis Year?

Paradise Motors

30%30% –42%42%

15%15% –25%25%

20%20% –30%30%

10%10% –20%20%

10%10% –20%20%

TargetNP%

MissOppt.

ActualNP %

GP

Avg.month

(42% -27%) x$30,000= $4,500

Breakeven$3,000

(20% -5%) x$40,000= $6,000

(20% -15%) x$100,000= $5,000

27%-20%5%40%15%

$30,000$15,000$40,000$100,000$100,000

PartsBodyShop

ServiceUsedVehicle

NewVehicle



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Where Could You Have DoneBetter This Year?

Paradise Motors

MissOppt.

Avgmonth

$4,500 x12 =$54,000

$3,000 x12 =

$36,000

$6,000 x12 =$70,000

$5,000 x12 =$60,000

PartsBodyShop

ServiceUsedVehicle

NewVehicle

Potential MissedOpportunities $220,000

Projected 2013 Net Profit = $750,000

First Roundof 2014 Net

Profit =$970,000

29%Improvement

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Where Could You Have DoneBetter This Year?

Paradise Motors

Projected 2013 Net Profit = $750,000

You have 3 choices for 2014:

Go backwards

Stay the same

Improve

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What Can You Do? Departments that are doing well, see how much

they improved over 2012. Will they continue to improve?

Sales Department:1more sale a week would beworth $110,000 more GP for the year$110,000 more GP for the year.

Service Department: 1more service tech =$180,000 more Labor & Parts GP for the year$180,000 more Labor & Parts GP for the year

Each Advisor is worth between $400,000$400,000 --$700,000$700,000 Labor & Parts Gross Profit per Year

Think BIG! BE AMBITIOUS!



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By setting goals, you create

measurable Targets, which forces

you and your Managers to develop

the Action Plans that will help you

reach those Targets.

From Goal Setting ToRecord Breaking

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Each Manager Needs A Goal

Once you’ve set the Dealership’s Goalsestablish the Managers’ Goals:

How much Net from each Department

Allocate the Department & OverheadExpenses

Add the Net and Expenses to determine theGross Profit each department needs toGenerate

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Ex: Dealership Net ProfitGoal = $1,500,000

New Vehicle $420,000Used Vehicle $600,000

Service Dept. $220,000

Body Shop $60,000Parts Dept. $200,000



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Ex: Dealership Net ProfitGoal = $1,500,000

Net Profit

Target

Net Profit

Target %

Gross Profit

Target Monthly GP

New Vehicle $420,000 20% $2,100,000 $175,000

Used Vehicle $600,000 40% $1,500,000 $125,000

Service Dept. $220,000 20% $1,100,000 $91,667

Body Shop $60,000 20% $300,000 $25,000Parts Dept. $200,000 40% $500,000 $41,667

NET PROFIT $1,500,000 27% $5,500,000 $458,333

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Ford & ChryslerEx: Dealership Net Profit

Goal = $1,500,000

Plus Overhead Expenses $1,365,000=$2,865,000 Selling Gross/Dept. Net

New Vehicle $945,000

Used Vehicle $825,000

Service Dept. $605,000

Body Shop $165,000

Parts Dept. $325,000

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Ford & Chrysler$2,865,000 Selling Gross/Dept. Net

Selling

Gross/Dept.Target

Selling

Gross/Dept.Target %

Gross ProfitTarget Monthly GP

New Vehicle $945,000 45% $2,100,000 $175,000

Used Vehicle $825,000 55% $1,500,000 $125,000

Service Dept. $605,000 55% $1,100,000 $91,667

Body Shop $165,000 55% $300,000 $25,000

Parts Dept. $325,000 65% $500,000 $41,667Selling Gross or

Dept. Net$2,865,000

Overhead Exp. ($1,365,000)

NET PROFIT $1,500,000 $5,500,000 $458,333



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Meetings

Schedule at least 3 meetings

Kickoff Meeting - Expense Review

Gross Profit Improvement Plans

Putting it All Together

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The goal of your 1st Goal Setting meeting is

to involve all Department Managers so they

are committed to the outcome

Reinforce the benefits of the Goal Setting

process – Planning for the future

This meeting is not to come up with all of

the plans to reach the goals

Kickoff Meeting Objectives

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Schedule a date and time for your meetings –

Consider around breakfast or lunch time.

1st meeting: Plan a couple hours to cover:

Benefits of goal setting

Expenses

Personnel/Staffing (Have pay plans

available)

Kickoff Meeting



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Kickoff Meeting

What was the best thing each Managerdid in 2013?

◦ Reinforces the benefits of change

◦ Provides the Managers with theopportunity to show off their skills

◦ Can you build on the process?

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Make it fun with prizes!

Most improved department

Best idea for reducing expenses

Best idea for growth

Kickoff Meeting

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Managers often feel there is little they can do

to control the Overhead Expenses.

Dispel the myth by:

• Examining overhead expenses with

Managers. (Phone, Electricity, Workers’

Comp, etc)

• Discussing ways of reducing the overhead

expenses.

• Taking a physical inventory of Fixed Assets

that are being depreciated. Are they still in

use or do they need to be written off?



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Start with reviewing the expenses for

the current year with the Managers.

• Look for expenses that can be

reduced or eliminated

• Misallocated Expenses

• Duplicate Services

Expense Budget

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Expense Budget

Examine the expenses with the Managers

Compare to benchmarks or targets

If you want to reduce any expense:

Monitor daily.

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Expenses

Examine the expenses with the Managers

Controllable:Advertising ExpensesFloor Plan ExpensesPolicy ExpensesOffice & Other SuppliesOutside ServicesTrainingFreight



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Expenses

Largest Expense

Personnel Expenses

Do the pay plans align with thedepartments’ goals?

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Personnel Expenses

Get a boost in production

eliminate draws

pay weekly, every 2 weeks or twice amonth.

Retain and attract Gen Y employees

They would rather have an hourly wagethan a commission pay plan on whichthey could earn more.

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Personnel Expenses

Gen Y Commissions

Ex: Base salary $3,000 (or hourly) amonth, plus a % of Gross Profit

Commission doesn’t kick in untilthey’ve covered at least a portion ofthe salary.



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Creating a forecast or goal setting is a wasteof time if there is no plan to change thecurrent structure and there are no plans toreach the goals.

Encourage the Managers to commit withAction Plans.

Kickoff Meeting Objectives

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Sample Action Plan

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Create good Action Plans to use as a roadmap

to reach goals:

Action Plans need to be written to cement the

commitment necessary to follow through

Set a measurable goal and how it will be

measured

Define the problem currently preventing us

from reaching the goal

Commit with Action Plans



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Define the strategies to reach the Goal

Examine obstacles to overcome

Who is in charge of implementation? Who will

be involved?

What resources will be necessary to

accomplish the goal?

Set a time-frame for completion and mini-

accomplishments

Commit with Action Plans

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Provide Managers With Their Goals

Lay out the dealership’s goals with thebreakdown of Expenses

and Gross Profit Goals for eachdepartment.

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Managers and Their Goals

Use measurements the managers are used toworking with or that are easy to measure:

Gross Profit per Finance Contract

Shop Hours

Labor Sales per Customer Pay Repair Order



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Provide Managers With Their Goals

Provide the managers witheasy-to-use tools to work on

Sales and Gross Profit improvement.

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Goal Setting Tools

Details

Details

Details

The Gross Profit Goal

Sales Department Example

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Gross Profit per Tech Hour $65

(Gross Profit/ Total Tech Hours)

Hours Flagged per Week 40

Gross Profit Per Week $2,600

Available Weeks 50

Annual Gross Profit $130,000

What Each Technician is Worth

Goal Setting ToolsService Department Example

Can YouImproveEither ofThese #s



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Break the Goals into Weekly Goals

Easiest – divide Goals by 52

Create seasonal Goals by reviewing2013’s trends.

2013 Average Sept Aug Jul Jun MayNew Vehicle Sales 61 41 67 72 69 75

Used Vehicle Sales 53 45 58 61 43 42

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“The problem is never how to get new,innovative thoughts into your mind,but how to get old ones out.”

Dee W. Hock

From Goal Setting to Record Breaking

54

Ask the questions, “What do I want my

Department to look like at the end of 2014?”

What do I want my staff to look like? Do I

need to “upgrade?”

What do I want my processes to look like?

Do we need more training?

What can I do differently to improve my

Department?

How will I reach my goals?

Goal Setting To Record Breaking!Goal Setting To Record Breaking!



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With your vision in mind, focus onwhat needs to be changed to make

the dream a reality.


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What are our plans for maximizing theimpact of the Internet?

How can we optimize our data base?

How can we close more deals?

How can we bring in more traffic?

How many more sales people will we need?

Vehicle Department Questions

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Does Finance speak will cash Customers?

Is the Sales Department doing a good job at

closing the Customer on the right vehicle,

or does finance have to re-close the

Customer?

Are there other after sale products we can

sell?

Is the “Finance Team” well trained?

Finance Department Questions



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Joni Stuker: How to Generate Your Own Sales Leadsby Effective Prospecting Via the BDC and Beyond!

Brian Pasch: Video Marketing Strategies That SellCars

Jennifer Suzuki: A Follow-Up Process to IncreaseVehicle Sales to Unsold Internet Leads

Steve Nickelsen: New Trends in Automotive SalesForce Management - Recruitment, Compensation &

Management Style

Sales & Marketing Webinars

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Do we need to go after new business or do a

better job with our current customers?

How will we staff for growth?

How can we improve Customer retention?

How is the mix of our work changing and

what do we do to optimize the change?

What do we need to do to be in the tire

business?

Service Department Questions

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Which Insurance Companies should we

pursue for DRP status?

Could we be doing more used vehicle work?

Do we need to improve the quality of our

work?

How much more could we do with more

staff or space?

Body Shop Questions



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Should we be in or out of the WholesaleBusiness?

Can we increase accessory sales?

Do we have a process to minimize anyunsold special order parts?

Could we support the Service Departmentbetter and, if applicable, the Body Shop?

Parts Department Questions

62

Greg Criss: Tips for Turning Your Quick ServiceLane from a Loss Leader into a Profit Driver

Chuck Hartle': New Parts Pricing Strategies toProfitably React and Adjust to New Factory PartsSystems & Initiatives

Sidney Haider: Seven "Ps" for Success in AccessorySales

Rob Campbell & Mike Bowers: What's New andDifferent in Fixed Operations Pay Plans

Service & Parts Webinars

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Often not considered a profit center,Accounting can make a huge difference in thebottom line.

What can Accounting do to help eachDepartment?

Do we have the right number of supportstaff?

What can the accounting department do tominimize audit expenses and helpdepartments comply with governmentregulations?

Accounting Questions



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Christine Andrews and Rob Campbell: The Habits &Practices of the Exceptional Automotive Controller

Jeff Sacks: Key Performance Indicators - The "Keys"to Professional Dealership Management & Growth

Charles Feuss: Top 10 Employment Law IssuesFacing Car Dealers in 2013

Doug Austin: Top Ten Dealership Cost Savers…How Dealers Saved Big Bucks in the Past Year and

You Can Too!

Senior Management Webinars

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After the Managers have had sufficient time todigest the data and created Action Plans to reachthe target net profit (selling gross/ departmentnet profit), discuss what changes are planned for2014.

This may end up being two meetings, onefocusing on front-end New & Used Sales and onefocusing on the back-end Service, Body Shop andParts Sales.

Either way all Managers should be in attendance.

Second MeetingSecond Meeting

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Have each Manager present what heor she is planning on doing

differently in 2014. Look for NEWideas or IMPROVEMENTS on currentprocesses that will lead to success.




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Once the group has discussed all the ideas,

the Department Managers should fine-tune

the Action Plans that will add to the success

of their Departments.

Make sure to include a specific time frame to

accomplish the Plans, along with the

Accounts Numbers to measure

improvements.


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With your Action Plans and Goals in hand, 2014 is

going to be a winner.

Now, perhaps the most important part of your plan -

getting your Employees involved with your plans for

2014!

Get Your Employees Involved


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Even though your goals may be broad, suchas “sell 95 new vehicles a month” or “turn4,500 shop hours a month,” Managers willneed to break these numbers down intoindividual goals.

By setting Employee’s personal goals you willbe able to coach each Employee, making iteasier to reach your goals.


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In a 20-year study by the Gallup Organization,“Knowing what is expected of one” was the topfactor in motivating Employees to besuccessful.

Managers’ steps:1) Review your Action Plans to determine which

Employees will be instrumental in implementingwhich Action Plans.

2) Schedule a meeting with all of your DepartmentEmployees. Use this time to excite your Employeesabout the future of the Dealership and theDepartment. Your enthusiasm will be contagious.


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3) Schedule individual meetings for each

Employee to review his or her role in implement

your plans and what has to be accomplished to

reach the goals.

All Employees should have the opportunity to

meet with their Managers.

For productive staff, use this meeting to review

and set individual goals—such as number of

units sold, number of hours flagged, etc.




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Meet with your Employees with the best

attitudes first, then meet with the others.

This will get the meetings started off right.

Share the goals you have set for him or her.

Be prepared to listen to why the goal can’t be

reached. This is an opportunity to review

your plans and gain valuable insight to

potential road blocks.


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Example of a response from a Technician:

“I can’t turn that many hours because theService Advisor’s don’t bother calling the

Customers with my estimates.”

Response by Service Manager:

“Part of our new Plan is to implement a second-effort process. If the Service Advisor hasn’tsold your estimate, you are now to come tome, then I will speak with the Customer tosell the job. Do you see how this will help

you turn more hours?”


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Each productive employee should haveindividual goals that tie to your overalldepartment and dealership goals. Because ofdifferent skills and experience, you cannotsimply divide your forecast by the number ofemployees.




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Example of Unit Goals:

Michelle J. (A veteran Sales Associate) – 15Units a month

Sammy L. (A New Sales Associate) – 8 Units amonth.


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Example of Hourly Goals:

Mark W. (Master Tech) - 65 flagged hours aweek

Tommy M. (C level Tech) - 45 flagged hours aweek


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Create an easy way to track each Employee’s

progress against the establish goals and

monitor it weekly.

With weekly goals you can make corrections

in actions and procedures immediately,

rather than waiting for the end of the month.

Compare Your Goals WeeklyCompare Your Goals Weekly



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WHITE BOARDS

1 White Board - $50

Professional Lettering - $175

Dry Erase Markers - $10

Record Month – Priceless!


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When an Employee reaches or exceeds his or

her goal – CELEBRATE!

Reward or recognize the winners publically.

This will reinforce the value of working

towards the goals.

It will show others that the goals are

attainable and the effort is appreciated.


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If you’ve followed the steps in this webinar, you

are poised for a successful 2014.

You established Goals.

You have determined the necessary Actions

to reach those Goals.

You’ve engaged your Employees in your

vision.

Now for the follow-through.




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Make reviewing the forecast part of eachmanager’s weekly responsibilities.

Where are they in respect to their goals? Justdon’t go through the exercise of creating aforecast — get on the scale every week and

see how you’re doing!


83

Review Actual vs. Goals

Goal New Units 16 Goal Labor GP $22,000Actual Net Units 17 Actual Labor GP $15,430

% of Goal 106% % of Goal 70%

Goal Used Units 10 Goal Parts GP $9,700Actual Net Units 8 Actual Parts GL $9,800

% of Goal 80% % of Goal 101%

Weekly

Weekly

Weekly

Weekly

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Take a calendar and your stack of Action Plans,

and mark the dates to check for

implementation and for the desired results.

During Managers Meeting take time to review

the Action Plans, if changes need to be made

to reach to goal; make the changes!




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You Action Plans are your road map for

success.

For the Action Plans that are falling below

expectations, review them and decide what

needs to be done to reach the Goals.

If you need outside help, ask for it!


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Brooke Samples, President

Profit Blueprints,LLC

[email protected]

1.866.316.7418

www.blueprintforprofits.com

Net Profit ImprovementDealership-Proven Plans for

Profit Blueprints, LLCProfit Blueprints, LLC



Page 29

Action Plan

Department Priority

Measurable

Goal

How will we

Measure

Person

Responsible

Time Frame

for Completion &

Mini-completion

Strategies

Obstacles to

Overcome



Page 30

Senior Management Workshops Last 12 Months:

Russell Grant:

Dealership Data Security in a World of More and More 3rd Party Vendors

Sep 2013 DGi1

Jeff Sacks:

Key Performance Indicators - The "Keys" to Professional Dealership Management & Growth

Aug 2013 DGH5

Christine Andrews and Rob Campbell:

The Habits & Practices of the Exceptional Automotive Controller

Aug 2013 DGH4

Erik Nachbahr:

How to Harness 21st Century Technology for Increases in Staff Efficiency, Computer Security & Cost Control

Aug 2013 DGH2

Jim Flint:

How to Avoid the Bermuda Triangle of Advertising Expense in Your Dealership or Group

Jul 2013 DGG3

Phillip Sherman:

TeleCom Tech Confusion: Cut Through the Clutter of New Technologies and Applications for Dealership TeleCom Systems

Jul 2013 DGG2

Mike DelGiudice & Lisa Reynolds:

Dealership IT and Data Security in an Age of Multiple Devices and Systems

May 2013 DGE3

Brooke Samples:

What Fixed Ops Mgrs Need to Know about the Financial Statement and Analytical Reporting

Apr 2013 DGD3

Adam Gillrie:

Do-It-Yourselfer’s Guide to Reducing Online Marketing Expenses (and How to Do More with What You Do Spend)

Apr 2013 DGD1

Charles Feuss:

Top 10 Employment Law Issues Facing Car Dealers in 2013

Mar 2013 DGC3

Sandi Jerome:

What Variable Department Managers Need to Know About the Financial Statement…

Mar 2013 DGC3

Doug Austin:

Top Ten Dealership Cost Savers… How Dealers Saved Big Bucks in the Past Year and You Can Too!

Jan 2013 DGA4

Joseph Roznai CPA:

Sales Tax Audits in Dealerships… Large 6 & 7-Figure Judgments are Becoming More Common- Prepare Now!

Jan 2013 DGA3

Paul Gillrie:

How to Analyze Your DMS Billing and Systematically Reduce Costs!

Dec 2012 DFL1

Jodi Kippe & Mercedes Hendricks:

Learn the Secrets and Savings of Consolidating Back Office Operations for Multi-Location Dealer Groups

Nov 2012 DFK2

Phil Kent:

Best Practices for Using Benchmarks to Drive Improved Dealership and Departmental Results

Nov 2012 DFK3

Ken Hantman:

20 D-I-Y Tips to Identify, Prevent and Minimize Threats from Breaches in Dealership Security and Safety!

Oct 2012 DFJ3

John Fisher & Marc Newman:

Affordable Health Care Act Implementation for Car Dealers - What you should be doing right NOW!

Sep 2012 DFI4

Sandi Jerome:

How Lead Controllers/CFOs Can Master the Management of Multiple Dealer Group Locations and Staffs

Sep 2012 DFI3

Steve Nickelsen:

How to Achieve & Maintain 100% Service Absorption.

Sep 2012 DFI2

Fixed Operations Management Workshops Last 12 Months:

Don Tipton:

How to Create a "Disney-Like" Customer Experience In Your Dealership Service Department

Aug 2013 DGH3

Greg Criss:

Tips for Turning Your Quick Service Lane from a Loss Leader into a Profit Driver

June 2013 DGF4

Chuck Hartle':

New Parts Pricing Strategies to Profitably React and Adjust to New Factory Parts Systems & Initiatives

June 2013 DGF3

Don Reed:

How to Manage the 8 Controllables of Dealership Service Profits

June 2013 DGF2

Steve Kwiatkowski:

How to Prepare Now for the Inevitable 50% Drop in R.O.s

June 2013 DGF1

Lloyd Schiller:

Improve your Service Dept 15% - 20% thru New Mgt Process and Revised Tech Compensation - Live Case Studies Revealed!

May 2013 DGE4

Sidney Haider:

Seven "Ps" for Success in Accessory Sales

May 2013 DGE2

Clayton Stanfield:

Selling Parts & Accessories on eBay – How Do You Take Advantage Of The Mobile Revolution?

Apr 2013 DGD4

Brooke Samples:

What Fixed Ops Mgrs Need to Know about the Financial Statement and Analytical Reporting

Apr 2013 DGD3

Rob Campbell & Mike Bowers:

What's New and Different in Fixed Operations Pay Plans!

Mar 2013 DGC1

Chuck Hartle':

Six "Pulse" Reports to Measure Parts Inventory Health

Jan 2013 DGA5

Ted Fellowes:

Parts eCommerce- How (and If) Your Dealership Can Profit by Selling Parts Online

Jan 2013 DGA2

Greg Criss:

How the "All Makes/All Models" Business Plan Can Succeed in Your Service Department

Jan 2013 DGA1

Don Tipton:

How to Create a Business Plan For Your Service Department

Dec 2012 DFL3

Mike Nicholes:

How to Plan for Parts Department Success

Dec 2012 DFL2

Joni Stuker:

How to Use a BDC for Fixed Ops Departments!

Nov 2012 DFK2

Ray Branch:

Advanced Effective Labor Rate Engineering!

Sep 2012 DFJ2

Mark Payne:

What Dealers, GMs and Controllers Need to Know About the Parts Dept! And Why Parts Mgrs Need To Keep Them Informed!

Sep 2012 DFJ1

Available for $298 Each at http://store.dealersedge.com …or…Get the DealersEdge Season Ticket Subscription and get a much, much better deal!

Sales & Marketing Management Workshops Last 12 Months:

Brian Pasch:

Learn How Google Wildfire is Recasting Digital Marketing Strategies for Auto Dealers

Sep 2013 DGi2

Joni Stuker:

How to Generate Your Own Sales Leads by Effective Prospecting Via the BDC and Beyond!

Jul 2013 DGG4

Jim Flint:

How to Avoid the Bermuda Triangle of Advertising Expense in Your Dealership or Group

Jul 2013 DGG3

Brian Pasch:

Video Marketing Strategies That Sell Cars

Jul 2013 DGG1

Stan Sher:

Evolving BDC Management Strategies: How to Keep Pace With the Changes & Make the New Pieces Fit!

May 2013 DGE5

Sidney Haider:

Seven "Ps" for Success in Accessory Sales

May 2013 DGE2

Jennifer Suzuki:

A Follow-Up Process to Increase Vehicle Sales to Unsold Internet Leads

May 2013 DGE1

Steve Nickelsen:

New Trends in Automotive Sales Force Management - Recruitment, Compensation & Management Style

Apr 2013 DGD2

Adam Gillrie:

Do-It-Yourselfer’s Guide to Reducing Online Marketing Expenses (and How to Do More with What You Do Spend)

Apr 2013 DGD1

Sandi Jerome:

What Variable Department Managers Need to Know About the Financial Statement…

Mar 2013 DGC3

Penny Phillips, J.D. :

Social Media Policy Update - The Rules Have Changed Again!

Mar 2013 DGC2

Brian Pasch:

Advanced Google Analytics for Auto Dealerships - Updated for 2013

Feb 2013 DGB4

Christine Rochelle / Darrah Raneri:

De-Mystifying Social Media Marketing for Auto Dealerships

Feb 2013 DGB3

Glenn Pasch:

Back by Popular Demand -- Basic Google Analytics 101 for Auto Dealers – How to Get Started!

Feb 2013 DGB2

Wade Berquist:

How Some Dealers are Capturing 40+ Additional Units by Selling Cars On the Service Drive!

Feb 2013 DGB1

Joni Stuker:

How to Use a BDC for Fixed Ops Departments!

Nov 2012 DFK2

Jennifer Suzuki:

21st Century Process for Closing More Sales - For Sales & Internet Managers!

Oct 2012 DFJ4

Brittany Richter:

Twitter for Car Dealers 101: How to Generate Site Traffic and Leads

Sep 2012 DFI1

Available for $298 Each at http://store.dealersedge.com …or…Get the DealersEdge Season Ticket Subscription and get a much, much better deal!

Profit Tools


November 2013

Volume 4, Issue 10

Published by:


9500 S. Ocean Drive, #1903

Jensen Beach, FL 34957

Toll Free: 877.316.7418

Fax: 772.672.3441

blueprintforprofits.com

Editor:

Brooke [email protected]

Mobile: 321.698.9131

Skype: profitblueprints

Dealership-Proven Solutions for Net Profit Improvement

My Number 1 Goal this Week is:

Inside This Issue

10 Worst Sales Will

Make You More Profit

Parts Inventory

Monthly Checklist

2

3

4

It took me many years, but I finally figured out that if you focus on one thing—you

can improve it. It makes no difference if it is in your personal life or your business

life. From improving your grades in school to losing weight to saving money, it

doesn’t matter what you focus on, it improves.

Each year I send you a calendar pad to help you select one goal a week to focus on.

During conference calls, I challenge Managers to pick one process or measurable

item on which they can improve. It could be the number of one-line item repair or-

ders in Service (less than 30%) or the number of appointments set from internet

leads in Sales (60% of better). The point is to take some time and work on one item.

By the end of the year, you have improved 52 things in your dealership or in your

life.

As we get closer to the end to the year, this month I’m selecting for you one process

to put into place—that is to reduce any old inventories or receivables. Have each

department list the 10 oldest from the following categories (if applicable):

New Vehicle InventoryUsed Vehicle Inventory Vehicle Receivables

Contracts in Transit Finance Reserve Receivables Refunds on Cancelled

Finance ProductsFactory Rebates

Service Receivables Parts Receivables Body Shop Receivables Warranty Re-

ceivables Sublet Inventory Parts Inventory (10 oldest parts) Open Repair Orders.

Have the Managers complete the form

and the accounting department run the

schedules to confirm (except Parts In-

ventory). In a Managers meeting, dis-

cuss the items on each list that are aged

and see what is being done to either Sell

the Inventory, Close the Repair Orders or

Collect the Receivables. The following

week, create a new list and compare it to

the previous week’s list. Are you making

progress in reducing these Aged Assets?

St #/ RO

#/Cust #Model/reason/

Description

$$$ Age

1

2

3

4

etc

from forecasting to goal setting to record · pdf filefrom forecasting to goal setting to...

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